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Posted 09/19/2015 6:22 pm
I had some time here to bring this thread up to speed and I figured, seeing I been away from work, I would take a look at where we stand right now.
For the most part, this year has been a year of fast violent moves in either direction and a couple months ago we witnessed the continued break downs in gold and silver which served to further strengthen the case that they are stuck in very strong downtrends that are not going away anytime soon.
Gold
What a mess gold is right now. It broke the previous yearly low of 1130 and crashed down all the way to 1072 followed by a vicious counter trend move that pushed it to about $100 dollars off its yearly low.
So what do we have right now at this moment besides a sloppy ugly chart?
For starters, there are 3 ranges that have developed. Take a look at the chart. On the counter trend move that started off the 1072 yearly low, gold marched to 1169 and stalled. As it moved lower from there, it in time developed yet another range, as it stopped at 1097 and bounced higher. From there it ran higher and closed out Friday at 1137.
At this point in time, the question is: will gold pop up higher into the next range or does it get rejected? Wait and watch is the answer, allow the market to show the way, even if it is acting crazy at the moment.
Silver
More slop and chop is what we have, just as in gold. Once again the previous yearly low was broken and silver made a fresh yearly low of 13.91. Silver itself had a vicious counter trend move that has pushed it roughly a dollar off those yearly lows.
This kind of price action in silver is one that needs more time to resolve what happens next. There really isn't much more to say really. A lot of wild moves, rapid moves lower, followed by rapid moves higher. NOT a market one wants to be involved in nor interested in until some sort of discernible pattern emerges.
In conclusion, more TIME is needed and the only thing certain for silver and gold is that they remain in a downtrend and the probabilities continue to point lower. There has been absolutely zero evidence in the price action to say that gold and silver are being accumulated and being bought enough to break this downtrend.
What we continue to see is gold and silver hit areas of support, bounce higher, move lower, hit yearly lows, rinse and repeat. This has been how this downtrend has played out for years now.
Don't make the mistake to think that gold and silver have stopped going down because they have rapid counter trend moves higher, this is typical and expected of an asset stuck in a downtrend where the sellers are in control.
Moreover, do not make this mistake that one can average down even from here because it will cost you. Just look over this thread, you can see people who were buying gold and silver from much higher prices, all of them sure that that gold and silver couldn't possibly drop lower.
The simple fact is that in financial markets there has to be the discipline to:
1- know when to buy the markets
2- know when its time to sell short the markets
3- know when to do exactly nothing at all.
For those who solely buy, ones best option right now would be to do very little at all in terms of buying. Save the hard earned cash.
For the most part, this year has been a year of fast violent moves in either direction and a couple months ago we witnessed the continued break downs in gold and silver which served to further strengthen the case that they are stuck in very strong downtrends that are not going away anytime soon.
Gold
What a mess gold is right now. It broke the previous yearly low of 1130 and crashed down all the way to 1072 followed by a vicious counter trend move that pushed it to about $100 dollars off its yearly low.
So what do we have right now at this moment besides a sloppy ugly chart?
For starters, there are 3 ranges that have developed. Take a look at the chart. On the counter trend move that started off the 1072 yearly low, gold marched to 1169 and stalled. As it moved lower from there, it in time developed yet another range, as it stopped at 1097 and bounced higher. From there it ran higher and closed out Friday at 1137.
At this point in time, the question is: will gold pop up higher into the next range or does it get rejected? Wait and watch is the answer, allow the market to show the way, even if it is acting crazy at the moment.
Silver
More slop and chop is what we have, just as in gold. Once again the previous yearly low was broken and silver made a fresh yearly low of 13.91. Silver itself had a vicious counter trend move that has pushed it roughly a dollar off those yearly lows.
This kind of price action in silver is one that needs more time to resolve what happens next. There really isn't much more to say really. A lot of wild moves, rapid moves lower, followed by rapid moves higher. NOT a market one wants to be involved in nor interested in until some sort of discernible pattern emerges.
In conclusion, more TIME is needed and the only thing certain for silver and gold is that they remain in a downtrend and the probabilities continue to point lower. There has been absolutely zero evidence in the price action to say that gold and silver are being accumulated and being bought enough to break this downtrend.
What we continue to see is gold and silver hit areas of support, bounce higher, move lower, hit yearly lows, rinse and repeat. This has been how this downtrend has played out for years now.
Don't make the mistake to think that gold and silver have stopped going down because they have rapid counter trend moves higher, this is typical and expected of an asset stuck in a downtrend where the sellers are in control.
Moreover, do not make this mistake that one can average down even from here because it will cost you. Just look over this thread, you can see people who were buying gold and silver from much higher prices, all of them sure that that gold and silver couldn't possibly drop lower.
The simple fact is that in financial markets there has to be the discipline to:
1- know when to buy the markets
2- know when its time to sell short the markets
3- know when to do exactly nothing at all.
For those who solely buy, ones best option right now would be to do very little at all in terms of buying. Save the hard earned cash.
Furthermore, with the Somalian elephant coins, I am a sucker for this series as you know, I enjoy them and like it greatly. This could be a long waiting game for me.
@northerncoins and fistfulladirt
